HomeMy WebLinkAboutRES 2009-03 - Board TRUCKEE DONNER
Resolution No. 2009 - 03
POLICY REGARDING REIMBURSEMENT OF TRAVEL AND
TRAINING EXPENSES FOR THE
BOARD OF DIRECTORS
WHEREAS, Directors of the Board on occasion incur expenses while involved in official Truckee
Donner Public Utility District business or while attending authorized meetings or training; and
WHEREAS the District needs to establish a policy for the reimbursement of expenses by Board
members as required by the California Government Code sections 53232.2 and 53233.3, and by
Assembly Bill 1234; and
WHEREAS the Policy will provide guidance to elected officials on the use and expenditure of
District resources, including cost control measures, allowable uses of District issued credit cards,
and submitting proper expense reports;
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TRUCKEE
DONNER PUBLIC UTILITY DISTRICT that:
The Travel and Expense Reimbursement Policy( Exhibit"A' forthe Board of Directors is hereby
adopted.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the seventh day of January 2009 by the following roll call vote:
AYES: Directors Aguera, Bender, Hemig, Hillstrom and Sutton
NOES: None
ABSTAIN: None
ABSENT: None
TRUCKEE DONN PUBLIC U LITY DISTRICT
0 7 ,6711, It
J. Ron a 'g, resident
ATTE T:
Michael D. Holley, Distr' r
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
TRAVEL AND EXPENSE REIMBURSEMENT POLICY
FOR BOARD OF DIRECTORS
Section 1. Objective
To establish a policy governing the reimbursement to members of the Board of Directors
("Directors") for expenses incurred while involved in official Truckee Donner Public Utility
District ("District") business or while attending authorized meetings or training.
Section 2. Policy Content
1. It is District policy to use public funds for travel and training only when there is a
substantial benefit to the District.
2. This policy provides guidance to elected and appointed officials on the use and
expenditure of District resources, as well as the standards directing those
expenditures.
3. It is District policy to satisfy the requirements of Government Code sections
53232.2 and 53233.3 and AB 1234.
4. It is District policy to reimburse Directors for authorized travel, meals, lodging,
and other actual and necessary expenses that are reasonably incurred in the
conduct of District business and detailed in an expense report with receipts
attached.
Section 3. Allowable Expenses
Directors shall only use District funds, equipment, supplies, and staff time for authorized
District business.
Directors shall use good judgment when incurring business expenses, and are expected
to use a reasonably economic means of lodging, meals and transportation that will meet
the traveler's requirements with due consideration to safety and comfort.
Expenses reasonably incurred in connection with the following types of Director activities
generally constitute allowable expenses, as long as the other requirements of this Policy
are met:
1. Meetings and communicating with representatives of regional, state and national
government on adopted policy positions;
2. Attending approved educational seminars designed to improve Directors' skill
and information level;
3. Participating in regional, state and national organization meetings or trainings,
such as NCPA, UAMPS, AWWA or CSDA; and
4. All other reasonable expenditures previously approved by the District's governing
body in a public meeting before the expenditures were incurred.
1 Travel & Expense Policy for Directors
a. Airfare
Air travel shall be by coach or standard class. The most cost-effective route shall be
used.
Alternate routes or additional stops for the Director's personal benefit shall be at the
Director's expense, prorated to the most cost-effective, direct route to the District-
related destination.
b. Automobile
Rental vehicle expense may be reimbursed when a Director, or other District official,
is attending an out-of-town conference, and it is determined that a rental vehicle is
the most economical transportation available. In making this determination, the rental
costs, parking and gasoline expenses shall be compared to the combined costs of
other available transportation.
Automobile mileage for personally owned automobiles shall be reimbursed at the
IRS rate currently in effect (see www.irs.gov). The rates are designed to compensate
the driver for gasoline, insurance, maintenance and other expenses associated with
operating the vehicle. Reasonable parking and toll expenses shall also be
reimbursed, but not fines and penalties for the violation of traffic, parking or other
laws.
Directors must have a valid driver's license and adequate liability insurance on their
vehicle. Proof of both shall be on record at the District office.
c. Taxis/Shuttles
Reasonable taxi or shuttle fares may be reimbursed, including a fifteen percent
(15%) gratuity per fare, when the cost of such fares is equal to or less than the cost
of vehicle rentals, gasoline and parking combined, or when such transportation is
reasonably necessary for time-efficiency. Fare reimbursements require valid
receipts.
Section 6. Lodging
The District shall reimburse the actual cost of reasonable lodging required for overnight
travel. Directors incurring overnight lodging costs while on District business shall seek
appropriate, economical accommodations. Directors shall use government and group
rates for lodging when available.
Pursuant to AB 1234, if the Director's lodging is in connection with a conference or other
seminar (e.g. mandatory ethics training), the lodging costs cannot exceed the group rate
published by the event sponsor. If the group rate is not available at the time of booking,
the Director is to use comparable lodging that does not exceed the District's Policy or
IRS rates, whichever is lower.
3 Travel & Expense Policy for Directors
Any unused advance shall be returned to the District within five (5) business days after
either the expenditure date or the Director returns from out-of-town. The Director shall
also provide valid itemized receipts and a detailed expense report explaining how the
cash advance was used in compliance with this Policy.
If the District's General Manager is uncertain as to whether a request complies with this
Policy, then the requesting Director shall seek approval from the District's Board at the
next regularly scheduled Board meeting.
Section 12. Credit Card Use Policy
District credit cards have been issued to each Director and shall only be used for
authorized District-related expenses. Absolutely no personal charges may be placed on
the District's credit card at any time.
The Director shall provide valid receipts within thirty (30) business days of the credit card
use. All submitted credit card expenses shall include the proprietary itemized receipt and
the credit card receipt. The Director shall also include a detailed expense report stating
the:
1. Dates of the expenditure(s);
2. Purpose of the expenditure(s);
3. Benefits of the expenditure(s) to the District; and
4. Any additional information.
Section 13. Submitting Travel Expense Reports
All cash advance expenditures, credit card expenses and other expense reimbursement
requests shall be submitted on the District provided expense report form. This form shall
include the following advisory:
All expenses reported on this form shall comply with the District's
policies relating to expenses and use of public resources. The
information submitted on this form is a public record Penalties for
misusing public resources and violating the District's policies include
loss of reimbursement privileges, restitution to the District, civil and
criminal penalties as well as additional income tax liability.
It is the Director's responsibility to provide a complete, detailed and factual accounting of
expenses on every expense report. Expense reports shall also indicate that the
documented expenses comply with this Policy.
Except for cash advances, which must be submitted in accordance with Section 11
above, Directors shall submit their expense reports within thirty (30) days of incurring an
expense.
5 Travel & Expense Policy for Directors
Expense reports shall include valid, itemized receipts for each documented expense. All `
credit card expense reports shall include the proprietary itemized receipt and the credit
card receipt. Inability to provide this required documentation may preclude
reimbursement and the Director will be personally responsible for the expenses.
The District's General Manager shall verify that the submitted expense report complies
with this Policy and approve the expense report for payment or reimbursement.
Section 14. Reports to the Governing Board
Directors shall provide brief reports on meetings, seminars, conferences, and other
events that they have attended at the District's expense during the next regular Board
meeting. If multiple Directors attended the same event, then a joint report may be
provided to the Board.
Section 15. Compliance with Laws
Directors shall keep in mind that some expenditures may be subject to additional
reporting requirements under the Political Reform Act and other applicable laws. All
District expenditures are public records subject to disclosure under the California Public
Records Act.
Section 16. Violation of This Policy
Use of public resources or falsifying expense reports in violation of this Policy may result
in the following penalties, without limitation: 1) loss of reimbursement privileges; 2) a
restitution to the District; 3) additional state and federal income tax liability for the
Director; 4) civil penalties for misuse of public resources (up to $1,000 per day plus three
times the value of the unlawful use; and 5) prosecution for misuse of public resources (2,
3, or 4 years in state prison and disqualification from holding public office in California).
6 Travel & Expense Policy for Directors
The District's reimbursable lodging rate is the reasonable base room rate charged, plus
lodging taxes. Lodging reimbursements require valid, itemized receipts.
Section 7. Meals
Directors must use good judgment as to the reasonableness of meal expenses.
Reasonable meal costs shall be based upon the per diem rate tables listed in IRS
Publication 1542. Directors shall use reasonable efforts to avoid particular areas of high-
cost meals and travel. Meal gratuities should not exceed acceptable and customary
practices. Directors are encouraged to take advantage of meals included in the price of a
seminar, conference, and/or their hotel room. Meal reimbursements require valid,
itemized receipts.
Section 8. Telephone/Fax/Cellular
Directors shall be reimbursed for reasonable telephone, cellular, and fax expenses when
traveling for District business. When on overnight travel, one telephone call per day to
the Directors family may be submitted for reimbursement. Telephone bills submitted for
reimbursement shall identify all calls made for District business. For cellular calls based
on a Director's specified minute plan, the Director shall identify the percentage of calls
made for District business for reimbursement. The District shall not reimburse cellular
charges for multimedia or text messaging services, unless permissible under Section 9,
below.
Section 9. Internet --
Directors shall be reimbursed for Internet access and/or usage fees while out of town if
Internet access is reasonably necessary for District-related business. Internet-related
expenses shall not exceed fifteen dollar ($15) per day.
Section 10. Airport Parking
Long-term parking shall be used for travel exceeding 24 hours. Directors shall use good
judgment in selecting the most cost-effective parking accommodations available.
Section 11. Cash Advance Policy
From time to time, it may be necessary for a Director to request a reasonable cash
advance for anticipated expenses while conducting District business. All cash advance
requests shall be submitted to the District's General Manager five (5) business days
prior to the need for the cash advance. The written requests shall include the:
1. Purpose of the expenditure(s);
2. Benefits of the expenditure(s) to the District;
3. Estimated amount of the expenditure(s) (e.g., lodging, meal, and transportation
expenses); and
4. Dates of the expenditure(s). ""
4 Travel & Expense Policy for Directors
Examples of expenses that the District will not reimburse include, without limitation:
1. The personal portion of any District-related trip;
2. Political or charitable contributions or events;
3. Family expenses, including partner's expenses when accompanying a Director
on District-related business, as well as children- or pet-related expenses;
4. Entertainment expenses, including theater, movies (either in-room or at the
theater), sporting events (including gym, massage and/or golf related expenses),
or other cultural events;
5. Mileage to and from District facilities or to attend meetings of the Board of
Directors;
6. Non-mileage personal automobile expenses, including repairs, traffic citations,
insurance or gasoline; and
7. Personal losses incurred while on District business.
Section 4. Authorization for Travel or Training
Any expenses that do not fall within this Policy or the Internal Revenue Service ("IRS")
rates must be approved by the District's governing body in a public meeting before the
expenditures were incurred; otherwise, the expenses are not reimbursable.
Board members shall request authorization to attend meetings or training during the
"Director Update" section of a regular Board of Directors meeting. If there is no Board
opposition, the request will be considered authorized by this policy. The Board President
or any Director can request the travel and/or training request be placed on the agenda of
the next regularly scheduled Board meeting for action.
Section 5. Cost Control
To conserve District resources and keep expenses within community standards for
public officials, Director expenditures shall strictly adhere to the following guidelines. The
District shall only pay or reimburse those expenses that meet these guidelines. Any
expenses incurred in excess of these guidelines are the Director's personal
responsibility.
Except as otherwise specified in this Policy, the District shall use the current IRS rates
established in Publication 463 (and any future amendments) as its reasonable
reimbursement rates.
A. Transportation
The most economical mode and class of transportation reasonably consistent with
scheduling needs shall be utilized, using the most direct and time-efficient route
available. Pursuant to AB 1234, Directors shall use government and group rates for all
transportation when available.
2 Travel & Expense Policy for Directors